19103835 project report small business for bbs

8/9/2019 19103835 Project Report Small Business for BBS

1/37

A Study onROLE OF HANDICRAFT ASSOCIATION ON

EXPORT PROMOTION OF THANKA ByBHAIRAB PD. PANDEYT.U. Registration number: 7-1-246-5-2004College Roll No: 174/063Exam Roll No : 310796A Field Work ReportSubmitted toPublic youth CampusPaknajol, KathmanduIn partial fulfillment of the requirements for the degree ofBachelor of Business StudiesAugust 20


2/37

Faculty of ManagementTribhuvan UniversityPublic Youth CampusRecommendationThis is certify that the field work assignment report:Submitted by:BHAIRAB PD. PANDEYEntitled

Role of Handicraft Association on Export Promotion ofThanka Has been prepared as approved as by this departmentThis fieldwork assignment report is forwarded for examinationSupervisorDate:- .Head of DepartmentPublic Youth Campus


3/37

ACKNOWLEDGEMENTThis field work report has been prepared under Small Business as partialfulfill requirement of Bachelor of Business Studies (BBS) programs offaculty of management T.U. I hope this study will help those who wish tostudy about Hand Made Paper Product in the future.A detailed list of authors, books & other sources which were used asfundamental sources in course of preparation of this report has beenincluded in Bibliography which will be useful to those enthusiastic to enterthe source.I would heartily like to thanks to our Lecturers of Public Youth Campus(Campus Coordinator), and all other respected lecturers of the college.I am also grateful to the staff of Handicraft Association of Nepal, especiallytowards manager for their efforts to conduct this study by providingnecessary data.Lastly, I would like to extend sincere gratitude to the known and unknownwriter of the books and references that has been taken during thepreparation of this field report. Also my thanks goes to all of my friends fortheir regular motivation, support and help to make this report possible.

BHAIRAB PD. PANDEYPublic Youth Campus


4/37

ContentsPage No.To Whom It May Concern iiRecommendation iiiAcknowledgement ivList of Table & Figures vList of Abbreviation Used viChapter I 1-121.1 Background of the Study 11.1.1 Handicraft 21.1.2 Introduction to Handicraft Association on Nepal 31.1.3 Export Procedure of Handicraft 51.1.4 Introduction of Thanka 61.1.5 Organization Structure of Handicraft Associaition 81.2 Statement of the problem 91.3 Objective of The Study 91.4 Significance of the Study 101.3 Research Methodology 10

1.5 Research Methodology 101.5.1 Research Design 101.5.2 Nature and Sources of Data 111.5.3 Data Collection Technique 111.5.4 Data analysis tools 121.6 Limitation of the Study 12Chapter II DATA PRESENTATION AND ANALYSIS 13-212.1 Relationship of Thanka export with total export of handicraft 132.2 Tendency of Thanka export 172.3 Country wise Export of Thanka 19Chapter III SUMMARY, CONCLUSION & RECOMM. 22-263.1 Summary 223.2 Conclusion 243.3 Recommendation 25

Bibliography


5/37

List of Tables and FiguresList of Tables 6-25Table No. Title of TablePage No1 Total Handicraft Export and Export of Thanka 132 Calculation of Coorelation Coefficient 163 Estimation of Trend line by least square method 184 Country wise Export of Thanka 20List of Figures 14-261 Bar Diagram Showing Total Handicraft Export 142 Bar Diagram Showing Thanka Export 143 Trend of Thanka Export 194 Country Wise Wise Export of Thanka 20


6/37

List of Abberviations UsedBBS : Bachelor of business studyC.V. : Coefficient of VariationFY : Fiscal YearHAN : Handicraft Association of NepalUSA : United State of AmericaURL : Universal Resource Locator


7/37

CHAPTER-IINTRODUCTION

1.1 Background Of The Study

Due to the rapid development in the field of science and technology, theeconomy of the any nation is highly affected. Due to the globalization, theorganizations are getting borderless and the world has become very small.No nation can remain isolated from one another due to the digital revelationin technology. International trade had flourished worldwide. In fact it hasbecome a part of economic activities in all nations.Now a day the International trade is regarded as a key factor to measure theeconomic growth of a nation. Any country needs foreign currency of its

economic prosperity. Both developed & underdeveloped countries can gainmuch more benefits from foreign trade. It can be very good source forearning foreign exchange. So, the developing countries like Nepal has nosuch satisfactory industrial products to export. But some distinct productswhich it produces the best. and has high demand and export phisibility inthe international market. One of the most common product having goodexport phisibility is handicraft. So the study of this product regarding exportand its promotion is being essential.


8/37

1.1.1 Handicraft

Generally, a producer solely made by human hands without using any kindsof complicated machinery and equipment is called handicraft. A simpledictionary meaning of handicraft is an art or craft needing skill with thehands . It is the practice of making decorative of functional objects, whollyor partly by hand, an requiring both manual and artistic skillAccording to Encyclopedia Britannica; Handicraft is the occupation ofmaking by hands usable products graced with visual appeal. Handicraftincludes such activities as needlework, lace-making, weaving, printed

textile decoration, basketry, pottery, ornamental, metal working, jeweler,leather working and wood working and such crafts as glass blowing and themaking of stain glass that requires complex facilities Therefore, we can say that handicrafts is an occupation that involvesmaking usable or decorative products by hand. For e.g. Origami (Japanesefor paper folding.). Developed in Japan, Origami is the art ofmaking/creating different kinds of objects by folding a sheet of paper. Theycreated forms range from simple figures to complex designs complete withhandicraft enjoyed worldwide. It has been popular especially as an art fromand hobby in Spain and Latin America.Handicraft have been a valuable part of Nepalese heritage. They express thegreat tradition and proud culture of this great Himalayan Kingdom. Theirorigin can be traced back to the Stone Age when human beings were devoidof tools of any king. The history of articles of everyday use


9/37

may be as old as the history of man living in Nepal itself. But the history ofartistic handicrafts. probably can be traced only since the 5th century A.D.

When one looks back to the Nepalese handicrafts design, materials, tools,craftsmanship and product development he/she finds them as old as thehuman civilization.

1.1.2 Introduction to Handicraft Association of Nepal

Handicraft Association of Nepal was established on 1971 to enhance andpromote handicraft trade and industry. It was registered under InstitutionalRegistration Act of Nepal. As a service oriented, non-profitable

organization of private sector business and artisan community, it helps itsmembers to improve their productivity, explore markets and introduce themto the international arena. It also works as a liaison between the membersand the Government / Non-Government organization. The Association hasmore than 1400 members and three branches within Nepal. Today HAN hasits own web site for the seekers of information about handicraft.Aims & Objectives of Handicraft Association of NepalBroadly, Association.s aims and objectives are as follows,

.To work towards steady growth of handicraft trade industry..To encourage Nepalese artisans to adopt handicraft promotion stheir profession by reserving Nepalese Cultural Heritage and topopularize it in the world.


10/37

.To Provide pragmatic suggestion and advice to His Majesty.sGovernment and its related agencies to formulate policy/programs forthe betterment of Handicraft Trade & Industry..To popularize and promote handicraft products..To strive towards enhancing the quality of handicraft goods and itsproductivity.

ActivitiesTo attain its aim and objectives, the Association has been undertaking thefollowing activities.

.Organize seminars, symposiums and conferences on various topicsrelevant to strengthening of the handicraft trade and industry..Explore additional markets for the handicraft products..Organize Exhibition and Trade Fairs to highlight handicraft productsand create public awareness in its usage..Activate and increase contacts with national and internationalAgencies for the growth of handicraft trade and industry..Institute award in recognition of highest Export and bestcraftsmanship..Arrange participation in international trade fairs and organizeexhibition for its members..Publication of news bulletins, books, catalogues, directory and thematerials relevant to handicraft trade and industry..Act as catalytic agent for management of training program for thebenefit of its members..Issuance of valuation certificates for handicraft and silver products.


11/37

.Certification of products made from the parts of domestic animals..Documentation & Dissemination of information regarding handicrafttrade industry.

1.1.3 Export Procedure of Handicraft

1. An export should have:

a. Registration of Firm/ Company/ Industryb. Registration in Local tax officec. Current account in commercial bank

II. An export order could be affected

a. If a letter of credit is opened on the exporters. name, orb. Advance payment is deposited, in convertible currency, in theexporter.s bank account, orc. Samples, up to the value of US $ 150 could be exported withoutthe condition stated in II. a and b

III. Documents required for Export

a. Commercial invoice certificate by Handicraft Association of Nepal.b. Packing list.c. Certificate of origin.d. Nepal Rastra Bank Declaration form.e. Certificate from Handicraft Association of Nepal.


12/37

f. Advance Payment or Letter of Credit.g. Authorized letterh. A copy of Firm registration/Income tax registrationi. A copy of customs agent registration.j. Museum pass certificate.k. G.S. (Generalized System of Preference) form A.l. No objection letter from Handicraft Association of Nepal.m. Recommendation letter from Depart of Forestry for forest basedproducts.n. Recommendation letter from Department of Mines for some mineralproducts.

1.1.4 Introduction of Thanka

The most popular paintings on canvas (coarse cotton) and on thick paper areoften called thankas or pauvas based on the Tibetan influence are mostlyintroduced by the Tibetan refugees settled in Nepal and by the Sherpas andtamang tribes of the northern regions. Amongst a sect in northern Nepal, asin Tibet, the second son in every household be sent to a gumba (monastery),where he is trained to be a lama. Fine arts are one of the subjects for thosestudents, who gradually turn into masters. This tradition is the chief reasonfor the profusion of paintings, (mainly on especially prepared and smokedcloth, but also on various other surfaces) that fill up all the gumbas in lamalands. This tradition is embued to the present generation as well, that thesethankas based on traditional symbols, forms styles, and color arrangementsand are carried out in gouache. Some for the artistic religious and historicalpaintings are also done by the Newars of Kathmandu Valley.


13/37

Varietis of the Buddhists and Hindu deities, secret philosophes andillustrative scenes full of narratives are painted by traditional methods.Mostly such paintings contain horror provoking images, the wheel of life,images of different gods and goddesses, illustrations of stories, variousshaktis (erotic figures), imaginary representations of the great thinkers, etc.some of these paintings were originally made to fulfill certain purposes,such as (a) to serve as a guide out of chaos of the unconscious and theentanglements of the world. (b) As a support of concentration, meditationand ritual aids on the way towards the centre of the consmos and self and(c)as a magical instruments were merely looking at a painting the faithfulmight achieve what is desired.While painting on coarse cotton of the ground with a mixture of chalk andglue, the colour, being likewise mixed with glue, become one with theground. The finished painting is varnished with glue, become one duck.segg mixed with water. Thanka is specially prepared on cloth of paper or leftbright subdued by some treatment are competitive to those in any othercountry. The artistic and decorative oriental value of these exotic works ofart can blend tastefully and can be conversation piece in any modern

drawing room.


14/37


15/37


16/37

1.3 Significance of the Study

This study is carried out to fulfill the requirement of BBS 3rd year. So this is significant for me to fulfill the requirement of BBS 3rd year. Also thedetailed methodology applied to carry out this research is described in thisand all the name of the writer and their publication are included in thebibliography. So this project wor will be helpful to those who want to carryout the study regarding the product of handicraft association in the future.

1.4 Research Methodology

Thanka, being one of the important exportable handicraft goods, should bestudied extensively for its export promotion. The main objective of thisreport is to carry out comparative study regarding total Handicraft exportcondition and Total thanka export condition of Nepal. Also to fine the trendof thanka export is another objective of the study. For this the detailedmethodology adopted is discussed under the following headings. Researchdesign, nature and sources of data collection techniques and data analysistools.1.5.1 Research Design

A research design is the arrangement of conditions for collection andanalysis of data in a manner that aims to combine relevance to the researchpurpose with economy in procedure. Research design is the


17/37

plan, structure and strategy of customer service conceived so as to obtainanswers to research questions. Descriptive and analytical research designfor the study has been applied as it gets two aspects. At first, it has thedescription of the situation and secondly, it has the interpretation of data.1.5.2 Nature and Sources of DataThis study is conducted on the basis secondary data only. The data relatedto the study are collected from the following sources:

1. Annual reports of Handicraft Association Nepal,2. Various booklets and journal concerned with foreign trade,Handicraft Association of Nepal and Thanka.3. From the official URL of Handicraft Association of Nepal:www.nepalhandicraft.com4. From the site of Thanka: www.yomari.com.np

1.5.3 Date Collection Technique

The information regarding to this study are mainly collected from the officeof Handicraft Association of Nepal from the published annual reportsrelating to the Export of different Handicrafts items. Also the Internet isused to find some literature and other necessary data regarding this study. Aprospectus published by HAN is much more useful to collect the dataregarding Introduction, Aim and Objectives, Promotion function. Also otherbooks regarding foreign trade are also studied to collect the data regardingthis Study.


18/37

1.5.4 Data Analysis ToolsPresentation of Data: The collected data were presented with the help ofSimple bar diagrams. Multiple bar diagrams etc.Statistical tools used: The analysis tools used in this study are Mean,Standard deviation, Trend analysis, Coefficient of Correlation analysis andCoefficient of Variation analysis.

1.5 Limitation of the Study

1. This study is mainly carried out to attain the partial fulfillment ofBBS III year, which is also a limitation of the study.2. The study is only focused on Export of Thanka and necessary data is

collected from only published source provided by HandicraftAssociation of Nepal.3. The study includes only five years data from FY 2060/61 to FY2064/20654. Only top 5 export countries are selected to carryout study aboutcountry wise export of Thankas.5. The study has time and economy bond.


19/37

CHAPTER-IIDATA PRESENTATION AND ANALYSIS2.1 Relationship of thanka export with total export ofhandicraftData PresentationTable 1 shows the figure relating to total handicraft and thanka export forthe five years form FY 2060/061 TO 2064/065Table No 1Total Handicraft Export and Export of thanka

FY

Total Handicraft Export

Total Thanka Export

2060/61

2719636490

17543529

2061/62

2552952543

15761935

2062/63

2571841423

15002557

2063/64

2849476340

21009108

2064/65

2880644848

15411112

Sources: Handicraft Association Nepal.The data relating to the total Handicraft export is presented in the followingmultiple bar diagram


20/37

Figure No.1Bar Diagram Showing Total Handicraft Export

Source: Table No.1The data relating to the total Handicraft export is presented in the followingmultiple bar diagramFigure No.2Bar Diagram Showing Thanka Export230024002500260027002800290030002060/0612061/0622062/0632063/0642064/065Total Handicraft ExportTotal Handicraft Export

050010001500200025002060/0612061/0622062/0632063/0642064/065Total Thanka ExportTotal Thanka Export

Source: Table No. 1


21/37

According to the above table and figure the export of total handicraft andthanka in the year 2060/61 is Rs. 2719636490 and Rs 1,75,432 respectively.Similarly the export figure of total handicraft in the year 2061/062, 2062/63,2063/64 and 2064/65 is Rs. 2552952543, Rs. 2571841423, Rs. 2849476340and Rs. 2880644848 respectively and that of thanka in the same year is Rs.15761935, Rs. 15002557, Rs 2, 10, 09,108 and Rs. 15411112 respectively.Data AnalysisProperties:

1. Correlation coefficient is denoted by r and lies between -1 and +12. When r=1, there is perfectly positive correlation between the twovariables3. When r=-1, there is perfectly negative correlation between the twovariables.4. When r=0, there is no correlation between the variables.

If the value of r is near to +1 or -1 the relationship between two variablesare closer and nearer the value of r to 0, lesser will be the relationship.


22/37

Table No. 2

FY

Handicraft Export(X)

Thanka Export(Y)

X=X-x

Y=Y-y

X2

Y2

2060

2719.63649

17.543529

4.7261612

0.597881

22.34

0.357461451

2061

2552.952543

15.761935

-161.9577858

-1.18371

26230.32

1.40117694

2062

2571.841423

15.002557

-143.0689058


23/37

-1.94309

20468.71

3.775603412

2063

2849.47634

21.009108

134.5660112

4.06346

18108.0116.51170555

2064

2880.644848

15.411112

165.7345192

-1.53454

27467.93

2.354801349

= 16574.55164

= 84.728241

= 92297.32

= 24.4007487

Calculation of Correlation Coefficient


24/37

SOURCE: Table No. 1


25/37

Here = = = 2714.910328; e = = =16.9456482Now, r ==== = 0.50Hence the coefficient of correlation r=0.50From the computation of coefficient or correlation between thanka exportand total handicraft export is r = 0.50 which shows positive moderatecorrelation between the total handicraft export and thanka export.2.2 Tendency of Thanka exportIf the rate of change of export is positive, the trend of the thanka export will be in rising trend and it will be failing trend if the change of export isnegative.


26/37

Table No. 3Estimation of Trend Line by Least Square Method

Year (X)

Thana Export (y)

X=X-2061

X2

Xy

yc

2060/61

17543529

-2

4

-35087058

16749180.4

2061/62

15761935

-1

1

-15761935

16847414.3

2062/63

15002557

0

0

0

16945648.2

2063/64

21009108

1

1


27/37

21009108

17043882.1

2064/65

15411112

2

4

30822224

17142116

0

Source: Table No.1Let, n=5=No. of years2061 = middle of the yearyc = computed value of y or trend valuea = average of loanb = rate of changeWe have yc = a+bxSince ,a =b =Hence, for year 60, yc = a +bx = 16945648.2+ -196467.8 = 16749180.4for year 60, yc = a +bx = 16945648.2+ -98233.9 = 16847414.3for year 60, yc = a +bx = 16945648.2+ 0 = 16945648.2for year 60, yc = a +bx = 16945648.2+ 98233.9 = 17043882.1for year 60, yc = a +bx = 16945648.2+ 196467.8= 17142116


28/37

Since the rate of change (b) is positive, the tred value will show a risingtrend. Also with the help of yc calculated above we can build the graph oftrend line as shown in the figure 3 belowFigure No. 3Trend Of Thanka Export

Source: Table No. 3According to the above figure No. 3 it is clear that the trend of thankaexport is in rising trend.2.3 Countrywise Export of ThankaThe following table shows the figure relating to country wise export ofThanak to thetop major 5 countries for the five years starting from FY2059/2060 to 2063/2064050000001000000015000000200000002500000060/06161/06262/06363/06464/065Trend line

of Thanka ExportTrend line of ThankaExport


29/37

Table No. 4Countrywise Export of ThankaRs. 000

FY

USA

GERMANY

JAPAN

INDIA

FRANCE

060/61

6390.267

2175.43

997.113

957.676

391.141

061/62

6146.096

1178.463

706.564

946.785

252.883

062/63

5184.345

1477.297

609.28

1414.103

350.226

063/64

5659.662

2422.834


30/37

2035.591

1419.075

774.33

064/65

4764.5

1825.197

990.343

1430.077

957.419

Source: Handicraft Association Nepal.The above data are also presented in the following figure.Figure No. 4Country Wise Export of Thanka

Source: Table No. 4According to the above table and figure the export of thankas in USA fromFY 2065/60 to FY 2063/64 is Rs. 6390.267, 6146.096, 5148.3450100020003000400050006000700060/6161/6262/6363/6464/65USAGERMANYJAPANINDIAFRANCE


31/37

5659.662 and 4764.5 thousands respectively. Similarly the export figure ofGermany if Rs. 2175.43, 1178.463, 1477.297, 2422.834 and 1825.197 isRs. 997.113, 946.785, 1414.103, 1419.075 and 1430.077 thousandsrespectively and that in the India compraises of Rs. 957.676, 946.785,1414.103, 1419.075 and 1430.077 thousands respectively. At las the exportfigure for the same period for France includes Rs. 391.141, 252.883,350.226, 774.33 and 957.419 respectively.Export country in top priority according to variabilityProperties:Less the C.V. the data will be more uniform and that will be less uniform ifC.V is more i.e. The Country having moir uniformity in thanka export is inthe top priority for export and other hold succeeding priority.


32/37

CHAPTER-IIISUMMARY, CONCLUSION & RECOMMENDATION3.1 SUMMARYHandicraft have beena valuable part of Nepalese heritage. They express thegreat tradition and proud culture of this great Himalayan Kingdom. Thehistory of articles of everyday use may be as old as the history of man livingin Nepal I itself. But the history of artistic hadicrafts. probably can betraced only since the 5th century A.D. When one looks back to the Nepalesehandicrafts design, materials, tools, craftsmanship and product developmenthe/she finds them as old as the human civilization.In Nepal the production, promotion and export of Handicraft is found to befacilitated by an organization called Handicraft Association which wasestablished on 1971 to enhance and promote handicraft trade and industry.It was registered under Institutional Registration Act of Nepal. As a serviceoriented, non-profitable organization of private sector business and artisancommunity, it helps its members to improve their productivity, expoloremarkets and introduce them to the international arena. It also works as aliaison between the members and the Government / Non-Government

organization. The Association has moir than 1400 members and threebranches within Nepal. Today HAN has its own web site for the seekers ofinformation about handicraft.

Thanka, one of the Handicraft products is the most popular paintings oncanvas (coarse cotton)and on thick paper based on the Tibetan influence


33/37

Is mostly introduced by the Tibetan refugees settled in Nepal and by theSherpas and Tamang tribes of the northern regions. This tradition is thechief reason for the profusion of paintings, (mainly on especially preparedand smoked cloth, but also on various other surfaces) that fill up all thegumbas in lama lands. Some for the artistic religious and historicalpaintings are also done by the Newars of Kathmandu valley. In this paintingvarieties of the Buddhists and Hindu deities, secret philosophies andillustrative scenes full of narratives are painted by traditional methods.Mostly such paintings contain horror provoking images, the wheel of life,images of different gods and goddesses, illustrations of stories, variousshaktis (erotic figures), imaginary representations of the great thinkers, etc.In this study the data concerned with Total Handicraft export and Thankaexport is presented. All the data presented relates from FY 2058/059 to FY2063/64. The data are presented by means of Tabulation and also plotted invarious types of diagram to make the data presented in cardinal numberclear.The data has been presented to analyze the objectives of examining thetrend of Thanka export, analyzing the relationship between Total Handicraft

export and Thanka Export, ascertaining different export countries onpriority basis.

The trend analysis of data is brought through least square method. Whilestudying the trend it was found that the average export of thanka for the past5 years was Rs. 16945648.2 and the value of b is found to be


34/37

98233.9. Since the value of b is positive the trend of Thanka export is inrising trend.The analysis of coefficient of correlation between Total Handicraft exportand Thanka Export found that these two sectors have moderate degree ofpositive correlation since the value of r calculated was 0.50.The analysis of coefficient of variation of export between different fivecountries helped to know ascertain the export countries on the priority basis.On he priority basis the USA is in top priority regarding uniformity on theExport as its CV is found to be smallest i.e. 10.63 where as the C.V. ofExport for India, Germany, Japan & France is 20.15, 24.85, 47.54 and 49.87respectively. Similarly the standard deviation of export for the exportcountries USA, India, Germany, Japan and France is found to be 598.82,248.60, 451.37, 507.61 and 271.81 respectively and mean of export for theUSA, Germany, India, Japan and France be 5628.98, 1815.848, 1233.55,1067.78, 545.20 respectively.3.2 Conclusion

From the analysis it is known that the export of Thanak is in rising trend. Itis also known that the total Export of Handicraft and Thanka export havemoderate degree of positive correlation. Bye the Study of C.V of differentcountries concerned with Thanka export it was found that the USA is in thehigh priority for the export procedure as it has lowest C.V. Similarly the


35/37

other countries on the priority basis of export are India, Germany, Japan andFrance.3.3 RecommendationBased on the findings of the study the following recommendation isformulated.Quality control is one of the great problems in Nepalese exportablegoods. Due to the lack of quality checking system quality less productmay be exported which may reduces export in the future. So the effortshould be taken by the side of government to establish quality checkingdepartment for exportable thanka.Due to the chief kasmiri product there is high competition in export,which may reduces the export of thanka in the future. So governmentshould be careful to get the patent rights of the Nepalese thanka.The association should give proper training for its member to producequality product. Also the member of the association should be carefulto maintain the quality of their product.The association should take its effort to search new export countriesand modern means of export by using recent net services.


36/37

BibliographyAgrawal, G.R, Project Management in Nepal, M.K. Publishers andDistributors, Kathmandu.Annual Report of Handicraft Association of Nepal From FY 64/65 to2065/66Bajracharya, B.C., Business statistics & mathematics, M.K publishers andDistributors, Bhotahity, Kathmandu, Edition 2057Brocer published by Handicraft Associaton of Nepal, 2007

URL: www.nepalhandicrafts.org

URL: www.yamori.com


37/37